Start-up firm to invest $1.3B in Japan solar plants

Japan Mega Solar Power will invest $1.3 billion to develop solar power plants in Japan.

The new company formed by West Holdings in June 2012 will set up 250 plants with a combined capacity of 500MW over five years.

It has so far attracted 12 investors, including Japan's finance and leasing company Orix, China-based photovoltaic cells maker JA Solar, and South Korea's LS Industrial Systems.

The company hopes to take advantage of higher tariffs offered for renewable energy in Japan, which is at JPY42 ($0.53) per kilowatt-hour for 20 years, nearly threefold increase from JPY14.59 ($0.18) per kilowatt-hour that industrial users paid for electricity in the year ended in March.

Japan Mega Solar managing director Toshihisa Nagashima said that they will adjust depending on preferential rates set annually by Japan's government for clean energy.

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